Use an annual percentage rate table to solve the problem.
-A restaurant owner purchased a new dishwasher for $4000. She paid 15% down and financed the Balance with a 12-month fixed installment loan with an APR of 8.5%. Determine the total finance Charge and monthly payment for the loan.
A) Total finance charge = $261.46; Monthly payment = $305.12
B) Total finance charge = $167.96 ; Monthly payment = $297.33
C) Total finance charge = $158.44; Monthly payment = $296.54
D) Total finance charge = $208.80; Monthly payment = $350.73

Question

Quizplus · Accepted Answer

The down payment is 15% of $4000, which is $600. The financed amount is $3400. Using an APR table or formula for a 12-month loan at 8.5%, the total finance charge is approximately $158.44, and the monthly payment is approximately $296.54.

Use an Annual Percentage Rate Table to Solve the Problem